Microsoft Offers Buyouts to Thousands of US Employees
Business Insider • • business
Key Points:
- Microsoft is offering one-time buyouts to long-serving US employees whose age plus years of service total 70 or more, potentially affecting up to 7% of its 125,000 US workforce, or about 8,750 people.
- The buyout program excludes some high-ranking employees and sales staff, aiming to reduce headcount without high-profile layoffs amid recent rounds of workforce reductions.
- This move comes as tech companies face pressure to cut staff due to AI advancements, with firms like Block and Meta announcing significant layoffs, though Microsoft’s email did not explicitly link the buyouts to AI.
- Microsoft is also revamping its pay and rewards system to better recognize high performers and provide managers more flexibility in rewarding top talent, moving away from tying stock awards to bonuses.
- Despite workforce adjustments, Microsoft continues heavy investment in AI and is expected to spend nearly $100 billion in capital expenditures this year to maintain competitiveness with rivals like Google.
